History of financial and credit relations lectures. Lectures on finance
Lecture 1. The concept, essence and functions of finance
1. The essence of finance
2. Functions of finance
3. Financial mechanism
4. Financial system
5. Stages of development of finance in Russia
1. The essence of finance
The concept of "finance" is often identified with money. To do this, consider the history of the development of this category. The term "finance" (it. finansia) arose in the 13th-18th centuries. in the trading cities of Italy and at first meant any cash payment, i.e. this term meant some kind of process, relations between subjects, and specifically - monetary relations.
Thus, the main features of finance are:
1. Money relations, i.e. money favor material basis the existence and functioning of finance (where there is no money, there can be no finance).
2. Having two entities, one of which is endowed with special powers. The state is such an entity.
3. In the process of monetary relations, the formation or use of public funds Money . We can say that the hallmark of finance is their stock character.
4. A regular flow of funds to the budget cannot be ensured without giving taxes, fees and other payments of a state-compulsory nature, which is achieved through the legal rule-making activities of the state, the creation of an appropriate fiscal apparatus.
Finance is not money, but at the same time, there is no finance without money.
Finance is a set of relations on the formation, distribution and use of funds of funds.
Finance is a set of monetary relations, in the process of which the formation and use of national funds of funds for the implementation of economic, social and political tasks by the state are carried out.
As a prerequisite for the emergence of finance can be called:
First premise. In Central Europe, as a result of the first bourgeois revolutions, the power of the monarchs was significantly curtailed and the head of state (monarch) was torn away from the treasury. A nationwide fund of funds arose - a budget that the head of state could not single-handedly dispose of.
Second premise. The formation and use of the budget began to be systemic, i.e. there were systems of state revenues and expenditures with a certain composition, structure and legislative consolidation. It is noteworthy that the main groups of the expenditure part of the budget have not changed much over the course of many centuries. Even then, four areas of spending were identified: for military purposes, management, economy, and social needs.
It is interesting that the share of management expenses in the budgets remains practically unchanged (11-13%). different countries in different periods. Significant changes in the structure of public spending occurred in the second half of the 20th century. They were expressed in the fact that some Western European countries significantly reduced military spending and gave preference to spending on social goals, the economy.
Third premise. Taxes in cash have acquired a predominant character, while earlier state revenues were formed mainly at the expense of taxes in kind and labor duties.
Thus, only at this stage in the development of statehood and monetary relations, it became possible to distribute the created product in value terms.
The main material source of cash income and funds of any state is the gross domestic product and its main part - the national income. With the help of Finance, it is distributed and redistributed and, consequently, has a direct impact on production, distribution and consumption.
Thus, finance expresses a certain sphere of production relations and belongs to the basic category.
At the same time, finances are also a historical category, since they have stages of emergence, development, i.e. change in time.
There are two main stages in the development of finance.
First stage- undeveloped form of finance. It is characterized, firstly, by the unproductive nature of finance, i.e. the bulk of the money (2/3 of the budget) was spent on military purposes and practically finances had no impact on the economy. Secondly, the narrowness of the financial system, consisting of one link - the budget and a limited number of financial relations. All of them were connected with the formation and use of the budget.
With the development of commodity-money relations, statehood, a need arose for new nationwide funds of funds and, accordingly, for new groups of monetary relations regarding their formation and use.
At present, everywhere, regardless of the political structure and the level of the economic structure of a state, finances have entered to the second stage of its development. This is due to the multi-link financial systems, a high degree their impact on the economy and a wide variety of financial relationships.
Along with traditional state finances, local finances, extra-budgetary special government funds, and finances of state enterprises have received significant development. Completely new areas of financial relations have emerged, such as the finances of interstate communities. For example, the countries of the European Community have created interstate cash funds used to finance agriculture, overcome negative consequences integration processes by individual regions of these countries. The CIS countries also stand in the way of creating similar funds. The finances of private transnational corporations are also a new sphere of financial relations.
Based on the foregoing, a broader definition of finance can be given.
Finance is a set of monetary relations organized by the state, during which the formation of centralized and decentralized funds of funds is carried out in order to fulfill the functions and tasks of the state and ensure conditions for expanded reproduction.
Financial relations are characterized by the presence of the state as a subject endowed with special rights. The state establishes taxes, fees, regulates the procedure for the formation of funds at enterprises.
Finances developed along with the strengthening of the state. For the pre-capitalist stages and for early capitalism, developed forms of finance are characteristic. Their distinguishing feature is the non-productive nature of their use, for example, state budget funds were spent on the maintenance of the royal court, a warrior. A new advanced form of finance emerged in industrialized countries in the 20th century. Its difference is in the active role of finance, with the help of which the state influences the economy (on the sphere of material production). Keynesianism served as the theoretical basis of modern finance. Keynes published The General Theory of Employment, Interest and Money in 1936. The essence of Keynesianism is that Keynes proved that the state can smooth out cyclical fluctuations in the economic process of forming the state budget. According to Keynes, there are 2 levers of fiscal policy (fiscus - treasury):
1. government spending
For example: in the event of a decline in production, it is advisable for the state to increase government spending, which is formed by the state budget deficit (expenditure is greater than income). With high inflation, the state needs to reduce effective demand, and this can be achieved by increasing taxes and creating a state budget surplus.
Until the mid-70s, the basis was Keynesianism.
2. Functions of finance
1. Distribution function
With the help of finance, the gross national product (GDP) and national income (NI) are distributed
GNP \u003d (MH + TK) + P
MZ - material costs
TK - labor costs
P - profit
Material costs - costs transferred to finished products,
ND = TK + P - newly created value
First, the primary distribution of the national income takes place, i.e. each participant in material production receives an appropriate income (a hired worker - wages, the owner of the means of production - profit, which he later uses for consumption and expansion of production).
Secondary distribution or redistribution. It goes in the sphere of circulation (trade and services). It also happens through the tax system to the budgets of various levels. Redistribution can occur between branches of subsistence production, between different social groups. There is also a waste of funds in the non-productive sphere.
2. Control function.
Another important function of finance is control, which is closely related to distribution. Among the huge variety of financial relations, there is not one that would not be associated with control over the formation and use of monetary funds. At the same time, there are no such financial relations, which would have only the function of control.
With the help of finance, the state distributes the social product not only in natural-material form, but also in value. In this regard, it becomes possible and necessary to control the provision of cost and natural-material proportions in the process of expanded reproduction.
It manifests itself through the activities of financial and control bodies that establish regulatory requirements in the field of finance and control their implementation. An important method of financial control is the control of rubles (fines, penalties, forfeits, etc.).
Finance exercises control at all stages of the creation, distribution and use of the social product and national income. The main purpose of control is to promote the most rational use of centralized and decentralized funds of funds in order to increase the efficiency of social production, improve the quality of work at all levels. National economy.
The object of the control function of finance is the financial performance of enterprises, organizations, institutions.
The form of implementation of the control function of finance is financial control. If the control function of finance is a property of finance itself, then financial control is the activity of special regulatory bodies that exercise this control.
Objects are subject to control regardless of their departmental subordination.
> Departmental financial control is carried out by control and audit departments of ministries and departments. These bodies conduct inspections of the financial and economic activities of subordinate enterprises and institutions.
> On-farm financial control is carried out by the financial services of enterprises and institutions (accounting departments, financial departments). Their functions include checking the production and financial activities of the enterprise itself, as well as its structural divisions.
> Public financial control is carried out by individual individuals on a voluntary basis.
> Independent financial control is carried out by audit firms and services. The object of control is the activity of all economic entities.
3. Regulatory function - impact on the sphere of production.
4. Stabilizing function, a consequence of the regulatory impact of finance on the economy.
3. Financial mechanism
Finance affects the sphere of production through the financial mechanism, which consists of 5 interrelated elements.
1. financial methods are ways of influencing finance on the economy.
For example, financial planning, investment, settlement system, insurance, etc.
2. financial leverage - methods of action of the financial method (price, depreciation, dividends,% rates, exchange rates and securities, etc.)
3. Legal support - laws, regulations and other documents of the governing bodies.
4. Regulatory support - instructions, standards, guidelines etc., which are issued by the Ministry of Finance for the financial part. State Customs Committee, State Tax Inspectorate.
5. Information support.
Database content legal and regulatory information, statistical authorities
4. Financial system
From an institutional point of view, this is a set of financial institutions; from an economic point of view, it is a set of monetary relations. It consists of the following links:
National finances, their task is the concentration of resources and financing of public needs;
Territorial finances solve the same problem, but on their territory,
Finances of business entities and, above all, enterprises in the sphere of material production.
Citizens' finances, household finances.
In this regard, the financial system is a combination of various spheres (links) of financial relations, each of which is characterized by features in the formation and use of funds of funds, a different role in social reproduction.
The financial system of the Russian Federation includes the following spheres of financial relations: the state budget, off-budget funds, credit, property and personal insurance funds, the stock market, finances of enterprises of various forms of ownership. All listed financial relations can be divided into two subsystems. This - public finance, due to which the needs of expanded reproduction at the macro level are met, and business entity finance used to provide the reproduction process with money at the micro level (insert table).
The division of the financial system into separate links is due to differences in the tasks of each link, as well as in the methods of formation and use of centralized and decentralized funds of funds.
National centralized funds of monetary resources are created through the distribution and redistribution of the national income created in the branches of material production. The important role played by the state in the field of economic and social development leads to the need to centralize a significant part of the financial resources at its disposal. Forms of their use are budgetary and extra-budgetary funds, through which the needs of the state in solving economic, political and social problems are met. Other forms and methods of formation and use of monetary funds are used by the credit and insurance links of the financial system.
Decentralized cash funds are formed from the cash income and savings of the enterprises themselves.
Despite the delimitation of the scope of activities and the use of special methods and forms of formation and use of monetary funds in each individual link, the financial system is unified, since it is based on a single source of resources for all links of this system.
The basis of a unified financial system is the finances of enterprises, since they are directly involved in the process of material production.
The source of centralized state funds of funds is the national income created in the sphere of material production.
National finances are organically linked with the finances of enterprises. On the one side, the main source of budget revenues is the national income generated in the sphere of material production. With another- the process of expanded reproduction is carried out not only due to own funds enterprises, but also at the expense of the nationwide fund of funds in the form of budget appropriations, the use of bank loans. In case of insufficiency of own funds, an enterprise can attract funds of other enterprises on a joint-stock basis, as well as borrowed funds on the basis of operations with securities. Through the conclusion of contracts with insurance companies, business risks are insured. The interconnection and interdependence of the constituent links of the financial system are due to the single essence of finance.
Through the financial system, the state influences the formation of centralized and decentralized monetary funds, accumulation and consumption funds, using taxes, state budget expenditures, and state credit for this.
The state budget is the main link of the financial system. It is a form of formation and use of a centralized fund of funds to ensure the functions of public authorities.
The state budget is the main financial plan of the country, approved by the Federal Assembly of the Russian Federation as a law. Through the state budget, the state concentrates a significant share of the national income to finance the national economy, social and cultural events, strengthen the country's defense and maintain state authorities and administration. With the help of the budget, the national income is redistributed, which creates an opportunity to maneuver money and purposefully influence the pace and level of development social production. This makes it possible to implement a unified economic and financial policy throughout the country.
One of the links of national finance is off-budget funds. Off-budget funds - funds of the federal government and local authorities associated with the financing of expenses not included in the budget. The formation of off-budget funds is carried out at the expense of mandatory earmarked contributions, which for an ordinary taxpayer are no different from taxes. The main amounts of deductions to off-budget funds are included in the prime cost and are set as a percentage of the wage fund. Organizationally, non-budgetary funds are separated from the budgets and have a certain independence. Extra-budgetary funds have a strictly designated purpose, which guarantees the use of funds in full. The separate functioning of off-budget funds allows for prompt financing of the most important social events. Unlike the state budget, the spending of off-budget funds is subject to less control by the legislature. On the one hand, this facilitates their use, and on the other hand, it makes it possible to spend these funds not in full. Therefore, in order to strengthen control over the spending of extra-budgetary funds, the question is raised of consolidating some of them in the budget while maintaining the target orientation of their expenditures.
Credit is a system of monetary relations through which the mobilization of temporarily free funds of the budget, the national economy and the population and their use on the terms of repayment.
Property and personal insurance funds provides compensation for possible losses from natural disasters and accidents, and also contributes to their prevention. Until 1990, our insurance was built on the basis of a state monopoly. This meant that only the state could carry out insurance operations and only the state could give guaranteed obligations to compensate for damage suffered by organizations or citizens as a result of a natural disaster or accident. All insurance operations in the country were carried out by the State Insurance of the USSR, which carried out its work on a cost-benefit basis.
The state monopoly on property and personal insurance made it possible on a national scale to centralize the funds provided for these purposes. In connection with the development of market relations in our country, it became possible to abandon the state monopoly in the insurance business. The market encourages state insurance organizations to change the structure and activities in accordance with the new economic conditions. Currently, along with state insurance organizations, insurance is carried out by non-state Insurance companies licensed to carry out insurance operations. Insurance in a market economy is increasingly becoming a commercial activity, but many insurance companies do not have a clear specialization in insurance areas. With a developed insurance system, insurance companies specialize in certain types of insurance services.
Among the links of the financial and credit system stock market occupies a special place. It can be singled out as a separate link, since the stock market is special kind financial relations arising from the sale and purchase of specific financial assets - securities. The task of the stock market is to ensure the flow of capital into industries with a high level of income. The stock market, like the credit link, serves to mobilize and effectively use temporarily free funds. But its distinctive feature is that stock market participants expect to receive a higher income compared to investing money in a bank. However, reverse side higher income turns out to be higher risk. The principles of using financial resources in the stock market depend on the types of securities in which they are invested, and on the types of transactions with securities.
Business entity finance are the basis of the unified financial system of the country. They serve the process of creating and distributing the social product and national income and are the main factor in the formation of centralized monetary funds. The security of centralized monetary funds with financial resources depends on the state of the finances of enterprises. At the same time, the active use of enterprise finances in the process of production and sale of the product does not exclude the participation of the budget, bank loans, and insurance in this process. In a market economy, on the basis of economic and financial independence, enterprises carry out their activities on the basis of commercial calculation, the purpose of which is the obligatory profit. They independently distribute the proceeds from the sale of products, form and use funds for production and social purposes, seek the funds they need to expand production, using credit resources and financial market resources.
The development of entrepreneurial activity contributes to the expansion of the independence of enterprises, freeing them from petty care by the state and at the same time increasing responsibility for the actual results of their work.
5. Stages of development of finance in Russia
October coup 1917
Commodity-money and financial relations were destroyed during the First World War, war capitalism set in. Essence in the centralized distribution of resources.
In the 1920s, according to the decrees of Lenin, it was carried out to the NEP. Monetary circulation was reformed with the help of gold coins.
Private entrepreneurship was allowed, many taxes were established, the rates of which were differentiated for state and cooperative enterprises were preferential, for private ones it was "times higher". Almost all the profits of state enterprises were withdrawn to the budget. A small share of it was allocated for housing construction, improving the working conditions of workers.
The beginning of the 30s the beginning of industrialization carried out a tax reform in the 30-31s. The number of taxes was reduced, the procedure for calculating them was simplified, a turnover tax was introduced, which existed until 1992. After the economic reform of 1965, the transition to a new system of planning and economic incentives. There was a new in the distribution of profits of the enterprise. Funds for economic incentives, funds for housing construction, production development, and material incentives began to be created.
Fund fees have been introduced.
In 1979, under the slogan the economy must be economical, a new stage in the improvement of the financial mechanism began. Two models of cost accounting were introduced. By the end of the 1980s, the rate of growth in labor productivity slowed down. 1/3 of enterprises were unprofitable. In 1989, the state budget deficit appeared for the first time.
Democratization and market reforms began in 1992.
The main base was laid in the early 90s.
Lecture 2. Budget system
2. Conceptual approaches to budgeting.
3. The budget process in the Russian Federation.
The budget is a breakdown of income and expenses. Applied in the state, family, enterprise.
The state budget is the financial plan of the state for the year, having the force of law.
The budget system is a set of all types of state budgets.
Budget device - the relationship between the links of the budget system.
The budget system of the Russian Federation consists of three links:
Lecture 3
1. Budget classification
2. Types of income
3. Types of expenses
Lecture 4. State loan
1. The state as a subject of credit relations
2. Domestic loans
3. Russia in the world market
Lecture 5. Insurance system
1. Organization of insurance activities in the Russian Federation.
2. State social insurance.
3. Non-state pension funds.
1. Organization of insurance activities in the Russian Federation
Insurance is an attitude to protect the property interests of individuals and legal entities, upon the occurrence of certain events for the report of monetary funds formed from insurance premiums.
An insured event is an event in connection with which indemnification is made.
Insurance premiums - insurance premiums, insurance voluntary on the basis of a contract or mandatory by virtue of law.
Three types of insurance:
1. Personal - life insurance, health insurance, disability insurance, as well as pensions.
2. Property - associated with the disposal and use of property.
3. Liability insurance - associated with compensation for harm caused to a person or property.
The policyholder enters into an insurance contract with an insurance company, which is an insurance liability. Policyholders may enter into insurance contracts with third parties.
An insurer is a legal entity of any organization legal form with a special license.
Insurance organizations do not have the right to engage in industrial, trade and business and banking activities.
The state establishes quotas for foreign participation in the authorized capital of insurance companies - a maximum of 15%.
When this quota is reached, the supervisory authorities for insurance activities stop issuing licenses to insurance companies with foreign capital participation.
Insurers can work through insurance agents and insurance brokers.
An insurance broker is a legal entity or an individual entrepreneur who conducts intermediary activities on their own behalf on the basis of instructions from the insured or insurer.
Insurance risk - assumes that the event is an object of insurance, has signs of probability and randomness of its occurrence.
The sum insured is the amount on the basis of which the amount is determined insurance premium and insurance payment. When insuring property, the sums insured cannot exceed its actual value at the time of conclusion of the contract.
Insurance indemnities cannot exceed the amount of direct damage, unless the contract provides for the payment of compensation in a certain amount.
To obtain a license to carry out insurance activities, the established amount of payment of the authorized capital is 25,000 or wages (minimum wage).
Insurance organizations form insurance reserves for future payments from the received insurance premiums. These reserves are not subject to withdrawal to the federal and other budgets, from income remaining after taxes and coming to the disposal of suppliers.
They can form the funds necessary for their activities. Temporarily free funds of insurance reserves are used for profitable investments in securities, in bank deposits. When placing funds, insurers should be guided by the principles of diversification, repayment, profitability, liquidity. Insurers publish annual balance sheets and income statements.
2. State social insurance
In accordance with the constitution of the Russian Federation, the state provides citizens with the following types of social security:
1. by age
2. due to illness, disability, in case of loss of a breadwinner, birth and upbringing of children
3. in case of unemployment
4. health care and free medical care
The financial basis of the state social insurance system is the state non-budgetary funds:
1. pension fund
2. RF social insurance fund
3. federal fund of obligatory medical insurance
4. state employment fund.
The resources of these funds are federal property, but are not included in the budgets of any levels and are not subject to withdrawal for other purposes.
The income of off-budget funds is formed from mandatory payments, established by the legislation of voluntary contributions, individuals and legal entities, income from the placement of temporarily free funds in securities and bank deposits.
The execution of budgets is carried out by the federal treasury. The budgets of each off-budget fund are annually reviewed, approved and given the status of law.
Pension fund - employer contributions 28% of the wage fund + (each worker 1% of his salary).
Social insurance fund - 5.4% of the wage fund is paid by the organization. From it are paid for childbirth, temporary disability, burial, sanatorium treatment (not paid).
State Employment Fund - 1.5% of the wage fund paid unemployment benefits, funding for retraining activities.
Mandatory health insurance fund 3.6% of the payroll fund incl. 0.2% goes to the federal fund.
3. Non-state pension funds - see lectures
Finance of non-profit organizations.
Public, religious societies, unions, associations - their constituent documents do not indicate the purpose of making a profit.
Non-profit organizations - it is allowed to engage in entrepreneurship to the extent that it contributes to the achievement of the main goal - to produce and sell goods, securities, participate in business companies as a contributor.
A non-profit organization keeps records of income and expenses for enterprises from activities, it can own personal property, sources are formed from the property of non-profit organizations - these are contributions from the founders, members of a voluntary society and donations, sales proceeds, dividends, b / o, rent. The profits of non-profit organizations are not subject to division among the participants.
Lecture 6. Finances of budgetary organizations.
Budgetary funds should be spent exclusively for the established purposes:
1. wages
2. insurance contributions to state non-budgetary funds
3. transfers
4. travel and other compensation payments to employees
5. payment for goods, works and services under state or municipal contracts
6. payment for goods, works and services in accordance with approved estimates without concluding contracts
Purchases of goods worth more than 2,000 minimum wages are made exclusively on the basis of state or municipal contracts concluded with individuals or legal entities.
State and municipal contracts are placed on a competitive basis, unless otherwise provided by the relevant legislation. Budgetary institutions, as well as public authorities and municipal governments are required to maintain procurement registers, which respectively record the name of the purchased goods, information about suppliers, prices and dates of purchases.
Lecture 7. Finance of commercial organizations and enterprises
1. basics of organizing finance for commercial organizations
2. balance structure
3. features of the formation of the authorized capital of joint-stock companies (OA) and limited liability companies (LLC)
4. income and expenses
5. financial results
1. Fundamentals of organizing finance for commercial organizations
Commercial organizations set themselves the goal of activity - making a profit. The finances of commercial organizations are built on the following positions:
1. Economic independence- enterprises independently withdraw sources of financing for their activities, determine the scope of their activities, as well as the circle of suppliers and buyers of their products.
2. Self-financed- means the enterprise must ensure current activities, at the expense of its own sources of funds, formed at the expense of sales proceeds.
In case of a shortage of own funds, an enterprise can attract commercial and bank loans on the principles of repayment, urgency, and payment.
3. material interest- as a result of production associated with the distribution of profits.
4. Material liability– at the conclusion of any agreements (fines, penalties, forfeits) for tax violations, for violations of the terms of repayment of bank loans.
5. Creation of financial reserves. Financial reserves - funds of funds intended for emergencies to cover unforeseen losses, writing off bad debts.
The organization is affected by two conditions:
1. Legal form
2. Industry specifics - for example, for a trade enterprise, in goods for sale; industrial production is characterized by investments in inventories.
In trade, goods turn around faster, and trade uses bank loans to a greater extent than enterprises.
2. The structure of the balance
Asset - placed funds
Liabilities - own funds, borrowed funds
An asset and a liability are two different classifications of cash held by a business.
Liability answers the question: where did the funds come from. An asset answers the question of what funds are invested or placed in.
A new form of balance sheet was introduced by order of the Ministry of Finance on 13.01.2000.
Assets
Section 1 - non-current assets
1. intangible assets– investments in patents, licenses, trademarks, copyrights.
2. fixed assets buildings, machinery and equipment, land plots.
There is much in common in the turnover of intangible assets and working capital. They participate in production for several years and transfer their value to the finished product in the form of depreciation.
3. income from investments in material assets
Section 2 - current assets
They are divided into working capital and circulation funds.
1. revolving funds- production stocks (raw materials, semi-finished products, fuel containers). Their value is fully transferred to finished products in one turnover of capital and is fully reimbursed through the sale of products.
2. circulation funds serve the process of selling products. These include stocks of finished products, goods, cash in settlements, i.e. accounts receivable.
Current assets also include short-term financial investments for a period of at least 12 months.
Passive
Section 3 - capital and reserves(reflects authorized capital, additional capital, reserve capital)
Additional capital - when revaluing fixed assets, which are formed in accordance with the constituent documents, reflects the social sphere fund, retained earnings of previous years and the reporting year, as well as uncovered loss of previous years and the reporting year.
Section 4 - long-term funds (companies) loans and credits received by enterprises that are repayable in 12 months from the reporting date.
Section 5 - short-term funds (companies) loans and credits that are repayable within 12 months after the reporting date, accounts payable are reflected, i.е. the amounts that the enterprise owes to suppliers and contractors for the products received, the amounts of bills of exchange payable, debts to the budget and extra-budgetary funds, deferred income and reserves for future expenses are reflected.
3. features of the formation of the authorized capital of joint-stock companies (OA) and limited liability companies (LLC)
JSC - a commercial organization authorized capital, which is divided into a certain number of shares.
Shareholders are not liable for the obligations of the company and bear the risk of losses within the value of their shares.
A joint-stock company is a legal entity that has its own separate property, an independent balance sheet.
JSC is liable for its obligations with all its property.
The authorized capital of a joint-stock company consists of the nominal value of shares acquired by shareholders.
The authorized capital determines the minimum size of the company's property, which guarantees the interests of its creditors. JSC has the right to issue ordinary and preferred shares. The amount of preferred shares should not exceed 25% of the authorized capital. The minimum authorized capital of an open company is at least 1,000 of the amount of wages, and a CJSC is at least 100.
The authorized capital may be increased by increasing the par value of shares or by placing additional shares. The authorized capital can be reduced by reducing the par value of shares or by reducing their total number by buying them back from shareholders.
When establishing a JSC, at least 50% of the authorized capital must be paid up by the time of registration.
JSC is obliged to create a reserve fund in the amount of at least 15% of its authorized capital.
This reserve is formed at the expense of annual deductions from net profit - at least 50% per year. Appointment of a reserve fund to cover losses, redeem bonds and issue shares in the absence of other funds.
LLC is a business company whose authorized capital is divided into shares. Members of an LLC bear the risk of loss to the extent of the value of their contributions.
The authorized capital of an LLC is at least 100 times the minimum wage. The size of the participant's share is determined as a percentage or a share.
4. income and expenses
The classification of the income of enterprises is given in the accounting regulation, which is called - the income of the organization PBU 9/99.
Income - economic benefits increase as a result of the receipt of cash or other property and the repayment of liabilities. All incomes, depending on their nature, the conditions for receiving and directing profits, are divided into 3 types:
1. income from ordinary activities- proceeds from the sale of products, goods, works, services.
2. operating rooms– rent, unused, etc., income from used, proceeds from the sale of various assets.
3.unrealized- fines, penalties, forfeits, gratuitous receipts of property.
Their classification is given in accounting, which is called the expenses of the organization PBU 10/99.
Expenses - reduction of economic payments as a result of the disposal of cash and other property and the emergence of liabilities.
The expenses of the organization are divided into types:
1. expenses for ordinary activities- expenses for the manufacture and sale of products, the purchase and sale of goods, the performance of works and services, depreciation of fixed assets and intangible assets. Expenses for ordinary activities are formed by the elements:
Material costs
Labor costs
Deductions for social needs
Depreciation
Other costs
2. operating expenses related to the sale, disposal and write-off of assets, the payment of a / o, as well as the costs associated with the participation of the authorized capital of other organizations, payment for bank services.
3. non-operating expenses– paid fines, penalties, forfeits, depreciation of assets, negative exchange differences.
5. financial results
The financial result is the profit or loss defined as the difference between the income and expenses of the enterprise.
The absolute amount of profit says little about the efficiency of the enterprise, so it is necessary to use relative indicators, i.e. profitability indicators.
1. profitability of production - the ratio of profit to the sum of current and non-current assets of the enterprise. Describes the return on invested capital.
2. profitability of certain types of products - the ratio of profit is the price of the product to its cost.
For example: price (unit of product) - 200 rubles.
Cost price - 120 rubles.
Profitability of its production 80/120х100 = 66.7%
The profit earned by the manufacturer is the balance sheet profit. After paying taxes, the company has at its disposal net profit, which forms the accumulation fund and the consumption fund.
The accumulation fund is a source of financial resources for expanding the activities of the enterprise through the acquisition of fixed assets and working capital.
The consumption fund is intended for the social development of the enterprise and material incentives for personnel.
The financial condition of the enterprise is characterized, first of all, by its liquidity, i.e. the ability to pay off obligations on time. There are the following indicators of liquidity.
1. Absolute liquidity ratio - Cal.
Cal \u003d DS + KEF / OKS
DS - cash
KFV - short-term financial investments
OKS - short-term liabilities
2. Intermediate coverage (or liquidity) ratio- KPL.
KPL \u003d DS + KFV + DZ / OKS
DZ - accounts receivable
3. Coverage ratio - KP
KP \u003d DS + KFV + DZ + ZZ / OKS
ZZ - stocks and costs
The most important financial indicator of an enterprise is the value of net assets (NA).
NA - the value of the property of the enterprise free from obligations. According to the law on joint-stock companies, the value of NA must not be less than the value of the authorized capital. If at the end of the second and each subsequent year of activity, their value is less than the authorized capital, Joint-Stock Company reduces the value of the authorized capital of the share of the value of net assets.
If the amount of net assets turned out to be less than the minimum amount of the authorized capital, then the JSC must be liquidated.
The enterprise may turn out to be an insolvent debtor, i.e. bankrupt.
For the timely diagnosis of bankruptcy, the criteria and satisfactory structures of the balance sheet of the enterprise were approved (Decree of the Government of the Russian Federation of May 20, 1994 No. 498).
MINISTRY OF EDUCATION AND SCIENCE OF THE RUSSIAN FEDERATION
FEDERAL AGENCY FOR EDUCATION
Kemerovo Institute (branch) GOU VPO "RGTEU"
Department of Banking
Finance and Credit Course of lectures
Kemerovo - 2010
The essence and functions of money, their types and features
Money- this is a product of a special kind, performing the role of a universal equivalent.
The role of money can be played by any goods that acquire social use value, i.e. the ability to exchange for any other goods and services. These products are used:
to express the value of other goods,
as a means to pay for other goods and services and make payments,
for the accumulation of social wealth.
At different times, salt, shells, cattle, furs, even huge stone disks acted as money. From about the 15th century, gold (rarely silver) has been playing the role of money everywhere. Regardless of which product serves as a universal equivalent, money in its essence is not a thing, but an economic category. That is why, with the development of commodity-money relations in society, it became possible to replace gold money with paper money, which has a meager real value in comparison with their face value. The following stories are known forms of money:
1. Full (or real) money- this is money, the nominal value of which basically corresponds to the value of the metal contained in it (gold and silver in bars and coins).
2. Paper money (or fiat or token money) are nominal tokens of value, representatives of value that do not possess value. Modern billon (i.e. change) coins also belong to the nominal signs of value.
Types of paper money:
1. Paper money in the narrow sense of the word (treasury notes) is banknotes endowed with a forced exchange rate, usually not exchangeable for metal, issued by the state instead of full-fledged money in order to cover the budget deficit.
2. Credit money is paper tokens of value that have arisen instead of gold on the basis of credit transactions (bill, check, banknote, bank deposits, electronic money).
Treasury notes were issued by the state in order to cover their expenses at the expense of share premium - the difference between the nominal value of issued paper money and the cost of printing them. Currently, treasury notes are practically not used in any state, but modern money, which is in the broad sense of the word paper money, has largely retained the properties of treasury notes. If modern money is issued into circulation to cover the deficit of the state budget, in this case, in essence, they are no different from treasury notes.
The centralization of banknote emission in the hands of a few of the most reliable banks at the beginning of the 20th century. led to the fact that banks began to issue money into circulation when performing credit operations, and not when discounting bills. This meant that money began to enter circulation not in the form of commercial, but in the form of bank lending. At this stage, credit money fully retained its connection with gold.
Since 1914, the process of losing the functions of money by gold begins - the process of its demonetization begins, which ended by 1976. From this point on, we can talk about the emergence of modern money.
Modern money- is a type of credit money, characterized by the following features:
modern money has lost its connection with gold;
enter into circulation in the order of bank lending;
can turn into paper and in the narrow sense of the word, if used unproductively.
The rapid development of the check turnover in the 50-70s of the 19th century led to a sharp increase in the costs of processing checks, the reduction of which became possible due to the introduction of automated current account systems and the replacement of checks with bank cards. A bank card is a means of making non-cash payments through bank accounts in electronic form or a means of obtaining cash in a bank (a means of converting electronic money into cash). This is a material carrier of information about the movement of non-cash money through accounts or about the transformation of non-cash money into cash. This carrier itself can be made of any material, modern cards are usually plastic with a magnetic stripe or with an integrated microcircuit (chip). An independent kind of money is not a bank card, but information about a quantitatively defined monetary obligation. These obligations are the so-called electronic money, which can be considered as virtual information money, the money of the future.
Electronic money is the issuer's perpetual monetary obligations to the bearer, issued into circulation both instead of traditional credit money received at the disposal of the issuer, and in the form of a loan provided by the issuer.
Thus, modern money is a kind of credit money, a transitional form from credit money that cannot be exchanged for gold to electronic money that exists only in non-cash form in the form of information stored on a special device (on a hard drive of a personal computer, or a microprocessor card). Electronic money functions as a payment instrument that has the properties of both cash and deposit money. With cash, they are united by the possibility of making settlements bypassing the banking system, and with traditional deposit instruments (bank cards, checks) - the possibility of making cashless payments through accounts opened with credit institutions.
The essence of money, like any other economic category, is manifested in their functions. In internal circulation, money functions as:
measure of value (or unit of account)- this function is implemented using the price, i.e. in the process of pricing or when evaluating goods on the market;
medium of exchange (or medium of exchange)- money functions mainly in retail trade as a means of purchase when purchasing goods for cash;
instrument of payment(some economists include this function in the function of a medium of exchange) money is used as a universal purchasing and means of payment in settlements for goods shipped or purchased on credit, as well as in making non-commodity payments;
a means of creating treasures, accumulations and savings(reserve value) - only gold acts as a treasure, absolute social wealth; paper money has never performed this function, and credit money is saved by the population and accumulated by business entities only through the credit system or the stock exchange;
world money- synthesize all the functions discussed above, but in international circulation. Sometimes they are singled out as an independent function. The transition to credit money that is not exchangeable for gold has led to the fact that the functions of money have now undergone some changes.
Money circulation: essence, cash and non-cash circulation
The movement of money in the performance of their functions in cash and non-cash forms in the internal circulation of the country ismonetary th turnover , ormoney turnover . In other words, money turnover is a constantly repeating circulation of cash and non-cash money. The subjects involved in the process of circulation of money are individuals, business entities and public authorities that carry out various payments and use money when buying goods and paying for various services. A special place in the field monetary circulation occupied by banks and non-bank credit organizations.
Structure of money turnover reflects the relationships between its various elements. These elements can be distinguished based on their various criteria:
Firstly, since money circulation is a continuous process of performing its functions by money, we can single out settlement-money circulation and financial and credit.
Secondly, since cash and non-cash money are used in circulation, the money turnover itself is divided into cash and non-cashprivate.
Settlement and money turnover is carried out when money performs the functions of a means of circulation and a means of payment on commodity market. In the financial and credit turnover, money performs the function of a means of payment, but necessarily of a non-commodity nature, or a means of savings and savings, the function of a measure of value was performed by money before entering the money circulation when setting prices for goods and services. Therefore, the function of the measure of value does not affect the structure of money circulation in any way, but it directly determines its value (the amount of money in circulation).
When issuing modern money into circulation, non-cash emission is primary, i.e. money initially appears as entries in correspondent accounts at central banks. Moreover, the higher the level of development of social production in the country, the greater the role played by non-cash payments in the structure of money circulation.
Cashless turnover - this is the movement of money in the internal circulation of the country by transferring them to accounts in credit institutions or by offsetting mutual claims. Non-cash money turnover covers settlements between:
enterprises, institutions and organizations of various forms of ownership that have settlement accounts with credit institutions;
legal entities and credit institutions for obtaining and repaying a loan;
legal entities and the population on payment of wages, income from securities;
individuals and legal entities and state authorities when paying taxes, fees and other obligatory payments and when receiving budgetary funds.
The volume of non-cash turnover depends on the size of GDP, the level of prices, taxes, the structure of production, the cost of tangible and intangible assets, assets and factors of production circulating on the market, interest rates on loans and deposits, etc. In economically developed countries, more than 95% of money turnover is carried out in the form of non-cash payments.
Cash turnover - that the movement of cash (banknotes and coins) on the internal turnover of the country in the circulation of goods and the implementation of non-commodity payments. RCCs at the territorial main departments of the Bank of Russia form a turnover cash desk for receiving and issuing cash, as well as reserve funds of bank notes and coins. The stocks of banknotes and coins not issued into circulation in the vaults of the BR constitute reserve funds. The balance of cash in the turnover cash desk is limited. If the established limit is exceeded, excess cash is transferred from the turnover cash desk to reserve funds. The Bank of Russia sets the amount of reserve funds based on the size of the working capital, the volume of cash turnover, storage conditions.
Topic 1: Essence and functions of enterprise finance.
1. The essence of enterprise finance.
2. Functions of enterprise finance.
3. Fundamentals of the organization of enterprise finance.
4. Features of the finance of enterprises of various forms of management.
1. The essence of enterprise finance.
The science of enterprise finance is part of the science of state finance.
Enterprise finance is an economic category, it is characterized by features inherent in the categories of finance as a whole - it is a cost, monetary, distribution category. It is associated with the funding of financial resources, acts in social reproduction as an objectively established part industrial relations. The existence of enterprise finance is due to the differentiation of socially useful activities, the emergence of commodity-money relations, and the operation of the law of value. As a category, enterprise finance is an important element of basic relations in the reproduction process; they serve production, distribution, exchange and consumption.
Financial resources- cash income and receipts at the disposal of a business entity and intended for the fulfillment of financial obligations, the implementation of expenses for expanded reproduction and economic stimulation.
The source of formation of financial resources at the national level is the national income, and at the level of a business entity - gross income and depreciation as part of national wealth used for investment.
Gross income includes wages, profits, indirect taxes, social security contributions.
Net income is income, indirect taxes, social security contributions. At the level of enterprises, financial resources are used in stock and non-stock form.
Financial resources are divided into:
| Name | Resource sources |
| I. Own funds | |
| - Depreciation - Profit from operations | - Revenue - Operating revenue |
| - Profit from investment activities | - Income from investment activities |
| - Profit from financial activities | - Income from financial activities |
| - Reserve fund | - Profit |
| - Repair Fund | - Cost price |
| - Insurance reserves | - cost or profit |
| II. Borrowed funds | |
| - Bank loans | - Resources of creditors |
| - Budget loans | |
| - Commercial loan | |
| - Accounts payable constant in circulation | |
| III. Involved funds | |
| - Equity funds | - Funds from eligible investors |
| - Insurance claims | |
| IV. Appropriations | |
| - Appropriations from the budget | - Budget |
On the basis of financial resources at the enterprise, the following cash funds can be created:
1) Equity funds:
a) authorized capital;
b) Additional capital (share premium, revaluation income);
c) reserve capital;
d) Investment fund;
e) Monetary Fund;
f) Others.
2) Debt Funds:
a) Bank loans;
b) Commercial loans;
c) Factoring;
d) Leasing;
e) Lenders;
f) Others.
3) Funds of attracted funds:
a) Consumption funds;
b) Calculation of dividends;
c) Deferred income;
d) Reserves for future expenses and payments
4) Operational cash funds:
a) To pay salaries;
b) For the payment of dividends;
c) For payments to the budget;
d) Others.
Enterprises have certain financial relations. They can be internal, which arise within the enterprise and external, which arise in relation to other enterprises and the financial and credit system.
These relationships include:
1) relations associated with the formation of primary income, the formation and use of trust funds - statutory, development fund, incentive fund, etc. Some of them are used for production development, others for consumption;
2) relations associated with the employees of the enterprise in the distribution of income, the issuance and placement of shares and bonds, the collection of fines and compensation for damage caused;
3) relations that develop between enterprises and insurance organizations on insurance operations and insurance compensation payments;
4) relations formed between enterprises and banks regarding the storage of money, obtaining and paying loans, paying interest on a loan, as well as regarding the provision of banking services - factoring, leasing, trust, etc.;
5) relations arising between enterprises and the state regarding the formation and use of budgetary and non-budgetary funds;
6) relations between enterprises and their higher management structures;
7) financial relations of the enterprise with the stock market on operations with securities;
8) relations with investors during the placement of investments, etc.
Thus: the finances of enterprises are monetary relations associated with the formation and use of financial resources to fulfill obligations to the financial and banking system, finance the costs of expanded reproduction, social services and incentives for employees.
The role of enterprise finance is as follows:
1) the formation of monetary funds necessary for the activities of the enterprise, depending on the form of ownership, is ensured;
2) the finances of enterprises affect the functioning of all available funds;
3) the finances of enterprises influence the distribution of profits to those funds that are needed;
4) the finances of enterprises must be used as a control tool for the exact use of a particular fund.
2. Functions of enterprise finance.
The main functions of enterprise finance are:
1) Providing,
2) Distribution,
3) Control.
Thanks to the supporting function, the enterprise fully provides itself with its own funds. Temporary need is provided by loans and other sources. Optimization of sources of funds - the main task financial service of the enterprise. It is impossible to allow a lack of funds, since in this case the enterprise will experience financial difficulties, and an excess - in this case, the efficiency of the use of funds decreases.
The distributive function is closely related to the providing function. Its role is in the primary distribution of the total social product created in industrial production. This means that enterprises form funds of funds at the expense of proceeds from the sale of products and the provision of services, directing them to reimburse the spent means of production, pay salaries and generate net income. Then there is a further redistribution of financial resources - tax withholding, payments to off-budget funds, creation of enterprise funds.
The control function of finance arises on the basis of the distribution function, becoming its continuation and development.
The objective basis of the control function is the cost accounting for the costs of production and sale of products, performance of work /, provision of services, the formation of income and cash funds of the enterprise and their use.
Any distributive act is at the same time a control act, i.e. By carrying out the distribution process, finance automatically performs a control function.
With the help of finance, constant monitoring of the implementation of production plans, profits, foreign exchange earnings, growth in labor productivity, and improvement in the use of material, labor, and financial resources are ensured.
The control function of finance is financial control, which is applied at all stages of the circulation of funds. Therefore, the control function, together with the distribution function, helps to increase the efficiency of production.
The control function is associated with the use of sanctions, as well as various financial indicators - liquidity, profitability, etc.
2. Organization of enterprise finance.
Under the organization of finance of enterprises is understood - the composition (list) of the monetary funds of enterprises, the procedure for their formation and use, the relationship between various funds of the enterprise, the relationship of the enterprise with the financial and credit system.
The competitiveness and solvency of the subject is determined, first of all, by the rational organization of finances. The market economy has led not only to the strengthening of the role of finance in the functioning of the enterprise, it has determined a new place for them in the economic system. Most market regulators are elements of the financial mechanism, i.e. included in finance.
The state of financial relations is determined by the state of its production and economic characteristics. But at the same time, the correct organization of finances is the main factor in the successful production activity of the enterprise.
In modern economic theories business is a system of capital movement.
The rational allocation of funds, their effective use and the search for long-term sources of financing is the main task of organizing the finances of an enterprise. Finance is the circulatory system of business. The circulation of funds begins and ends with the movement of money.
The financial activity of the enterprise includes:
1) Planning and forecasting the financial resources of the enterprise (consideration and adoption of the budget for income and expenses for a certain period);
1. Socio-economic essence of finance, their features.
Finance is a set of monetary relations organized by the state, in the course of which the formation and use of national funds of funds for the implementation of economic, political and social tasks is carried out. Finances are an integral part of monetary relations. This is an economic tool. It is customary to refer to financial relations that determine the content of finance as an economic category:
1. between the enterprise and the state on payment of payments to the budget
2. between the state and citizens when making mandatory and voluntary payments to budget and extra-budgetary funds
3. between the enterprise and the parent organization when creating the centralization of funds and reserves
4. between the enterprise and off-budget funds when making insurance premiums to these funds
5. between enterprises and banks when obtaining a loan, keeping funds in accounts
6. between the enterprise and the insurance authorities when paying insurance premiums and indemnification upon the occurrence of an insurance situation.
7. between the enterprise and employees employed in this enterprise (salary).
Financial relations cover that part of the relationship that is associated with the formation and use of funds. Finance does not include money that provides for personal consumption and exchange.
The salient features of finance are:
1. the distributive nature of relations, which is based on legal norms or business ethics, is associated with the movement of real money, regardless of the movement of value in commodity form
2. One-way cash flow
3. creation of centralized and decentralized funds of funds.
4. finances are monetary in nature.
2. Stages of development of finance, basic concepts of finance .
The main development of finance received in the XV century. In Russia, the initial independent course of finance appeared in 1904 with the publication of Ozerov's work "The Creation of Financial Science".
The following prerequisites for the development of finance are distinguished:
1. significant limitation of the power of monarchs as a result of the first bourgeois revolutions. Monarchist regimes survived, but the heads of state could no longer use and manage the treasury alone. It became a nationwide fund of funds (budget).
2. The formation of the state budget began to be of a regular nature, i.e. there were systems of state revenues and expenditures with a certain composition, structure and legislative consolidation.
3. Taxes began to be levied mainly in cash. If earlier state revenues were formed mainly at the expense of taxes in kind and labor duties, then by the end of the 19th and beginning of the 20th centuries, cash taxes already accounted for 80-90% of all budget revenues. At this stage of the development of statehood and monetary relations, it became possible to fully distribute the created product in value terms.
There are two stages in the development of finance:
1. An undeveloped form of finance. It was characterized by a non-productive nature, the narrowness of the financial system, because it consists of one link (budgetary). The number of financial relationships was limited.
2. Due to the multi-link financial system, a high degree of impact on the economy, a wide variety of financial relations.
Finance is currently at this stage of development.
Basic concepts of finance :
1. Distribution concept:
1. 1. What relates to finance is always monetary relations
1.2. Finance can only arise at the stage of distribution, since this stage differs from all the others in that here there is a one-way movement of the monetary form of value, its isolation from its natural-material embodiment.
1.3. Cash income, savings and deductions that take the form of financial resources, the formation and use of special-purpose funds
2. Reproductive concept:
2.2. Finance here arises when endowing production assets newly created enterprises.
2.3. Financial relations are manifested in the form of the allocation of wages, depreciation, etc. from the cost of state budget revenues.
2.4. Finance provides for the needs of reproduction due to the accumulation of funds in the form of special-purpose funds.
3. Functions and principles of finance
The Moscow School considers two functions of finance:
1. Control
2. Distribution
Piterskaya considers another function
3. Stimulant
1. Distribution and redistribution the national income of the state to the accumulation fund and the consumption fund. This function is manifested in the distribution of national income, when there is a restructuring of the national economy and the allocation of priority sectors of the economy. The ultimate goal of the distribution and redistribution of national income and GDP is to develop productive forces, strengthen the state, achieve High Quality the life of the population.
2. control function expresses the properties of control influence on the course of the distributive process, objectively inherent in finance. Through this function, the public purpose of finance is realized to signal the emerging proportions in the distribution of funds, the receipt of financial resources at the disposal of business entities in their economical and efficient use.
3. Stimulation is to develop the best methods and ways to ensure the fulfillment of the goals of the state.
Principles of Finance .
1. Unity- Legislative legal bases, monetary, credit and tax systems. Unification of forms of financial documentation and reporting.
2. balance- balance of budgetary and state. off-budget funds means that the amount of expected expenses should correspond to the total amount of income generated from tax and non-tax payments, as well as borrowed funds
3. Targeting principle- the goals of public finance to attract revenues in the form of taxes, fees and non-tax revenues, the redistribution of resources in accordance with the approved parameters and directions for the development of sectors of the national economy.
4. The principle of diversification- each participant in financial relations d.b. lender not one, but for several borrowers and vice versa, this allows you to reduce entrepreneurial risk.
5. The principle of organization in time- lies in the fact that, along with the current tasks, the subjects of financial relations should focus on medium and long-term prospects. In the Russian Federation for 2006-08, a medium-term financial plan has been drawn up.
Priority areas of budget expenditure in 2006: "Health care", "Education", "Development of the agro-industrial complex", "Housing".
4. Financial policy: content, structure and objectives .
Financial policy is a special area of state activity aimed at mobilizing financial resources, their rational distribution and efficient use for the state to carry out its functions.
The financial policy consists of the following components:
1. tax policy
2. budget policy
3. credit policy
4. pricing policy
5. customs policy
6. investment policy
7. international finance policy
8. social policy
Allocate three main types financial policy:
1. Classic. Its main direction is the non-intervention of the state in the economy, the preservation of free competition, the use of the market mechanism as the main regulator of economic processes. Government spending is minimized. The tax system was based on indirect and property taxes. The governing body was the Ministry of Finance.
2. Regulatory- substantiates the need for state intervention and regulation of the cyclical development of the economy. The main instruments of intervention are government spending, through which additional demand is formed and, as a result, production growth, the elimination of unemployment, and an increase in national income. The main regulatory mechanism is the income tax, which uses progressive rates; state credit, loan capital market. The budget deficit is used to regulate the economy.
3. Planned - directive financial policy is applied in countries with an administrative - command system. Based on state ownership of the means of production. The goal is to concentrate all financial resources not used by the population, enterprises and local authorities in the hands of the state and their subsequent distribution in accordance with the main directions of the state development plan.
Financial policy faces the following tasks:
1. Providing conditions for the formation of the maximum possible fin. resources.
2. Establishment of rational distribution and use of fin. resources
3. Organization of regulation and stimulation of economy and social. processes by financial methods
4. Development of financial instruments. mechanism and its development in accordance with the changing goals and objectives of the strategy.
5. Creation of an effective and maximum business system for operational financial management.
5. Financial management: essence, methods, tools .
Financial management is a process of targeted impact with the help of special techniques and methods on financial relations and the corresponding types of financial resources to implement the functions of government entities and business entities, the goals and objectives of their activities.
In financial management, there are two groups of methods:
1. Economic
2. Administrative
1 TO economic relate:
fiscal policy;
Financial planning;
Coordination of financial resources;
financial regulation.
Fiscal policy is the measures taken by government bodies to change the order of taxation and the structure of public spending in order to influence the economy in order to accelerate economic growth.
The object of financial planning is the formation and distribution of income and savings, the use of cash funds.
2.K administrative methods should include:
depreciation system;
The system of financial sanctions.
Financial management.
There are the following functional elements of financial management (tools):
1. Financial planning
2. Financial forecasting
3. Operational management
4. Financial control
1. The purpose of the fin. planning is to provide fin. resources of reproduction processes in accordance with the programs of social economy. development for the planned period.
2. The main goal of the fin. forecasting is an assessment of the estimated volume of financial resources to determine the preferred options for financial resources. Ensuring the activities of business entities, state bodies. authorities and local governments.
3. Operational management is the process of developing a set of measures aimed at achieving maximum effect at a minimum cost based on an analysis of the current financial. situation and the corresponding redistribution of fin. resources.
4. Financial control is a set of actions and operations carried out by special authorized bodies in order to control compliance by business entities, state bodies. authorities and local governments of the law in the process of formation, distribution and use of Fin. resources for the timely receipt of complete and reliable information on the implementation of the adopted management financial. solutions.
6. Financial planning, forecasting and control.
Financial planning.
The objects of financial planning are the financial activities of business entities and the state, and the final result is the preparation of financial plans, ranging from estimates of an individual institution to a consolidated financial plan of the state.
Planning is characterized by:
Extensiveness (covers a wide range of socio-political and economic phenomena)
Intensity (implies the use of perfect technique)
Efficiency (means that in the end it is necessary to achieve the goals set by financial management).
FINANCIAL PLANNING METHODS
Automatic (this year's data is carried over to the next year multiplied by the inflation rate);
Statistical (expenses for previous years are added up and divided by the number of previous years);
Zero base method (all positions must be calculated on a new basis. This method takes into account real needs and links them with opportunities;
Financial planning at the state level.
The consolidated financial balance of the state consists of revenue and expenditure parts.
Commercial enterprise.
A financial plan for a commercial enterprise is a balance of income and expenses.
Budget company.
For budgetary organizations, a financial plan is an estimate.
The main difference between the estimate and the balance sheet is that the estimate reflects the expenditure side in great detail, while income is reflected in the context of sources. For budgeting, control figures and economic standards are used as initial data. Target figures consist of indicators that reflect the specifics of activities and are guidelines.
For all sections of the estimate, the planned and reporting data of the current year are given, which allow them to be compared with the indicators of the planned year.
Financial planning for public authorities and administration. These are budgets of various levels, which are divided into revenue and expenditure parts.
Financial control.
The object of the control function is the financial performance of organizations or enterprises and, depending on the subject (supervisory body), financial control is divided into:
National control (non-departmental). The bodies of state power and management and control are carried out by enterprises and organizations, regardless of departmental subordination;
Departmental financial control is carried out by the control and audit departments of ministries and departments. They check the financial and economic activities of subordinate institutions;
Internal financial control is carried out by the financial services of enterprises and organizations. Their functions include checking the production and financial activities of the enterprise itself and its divisions;
Public financial control is carried out on a public-voluntary basis individuals;
Independent financial control is carried out by independent audit firms;
State federal control is exercised by the highest bodies of federal administration: the State Duma, the Federation Council.
7. Monetary policy - as an integral part of financial policy .
Monetary policy is a set of measures in the field of money circulation and credit aimed at regulating economic growth, curbing inflation, ensuring employment and equalizing the balance of payments.
Monetary policy is carried out by central banks in close contact with the Ministry of Finance together with other state bodies. In a highly developed market economy, D.k.p. is based on the principle of "compensatory regulation". The principle of compensatory regulation includes a combination of two sets of measures:
Monetary restriction policies (restrictions on lending operations, increase in interest rates, slowdown in growth rates money supply in circulation);
Policies of monetary expansion (stimulating credit operations through a decrease in the rate of interest and an increase in the money supply in circulation).
The main methods of monetary policy are:
- change in the discount rate;
- open market operations;
Changes in the norms of required reserves of banks; as well as special methods for regulating certain types of credit.
The subject of monetary policy is the central bank. By law, he carries out the instructions of the government, but is not a government institution, but has a certain degree of independence. Such rights are given to him on the basis of the principle of separation of powers. The government has no right to demand that the credit center solve its financial problems by issuing additional money.
Basically, the Central Bank of the Russian Federation uses methods of indirect influence on the monetary and credit sphere and related areas of the economy. However, when conducting a certain range of operations, the Central Bank of the Russian Federation has the right to directly intervene in certain processes. For example, direct intervention in the area under consideration can be considered the regulation of the issue of money and the restriction of the dynamics of lending.
8. Financial mechanism: concept, types.
financial mechanism - this is a system of forms, types and methods of financial relations established by the state, through which the formation and use of financial resources is carried out.
The financial mechanism consists of a combination organizational forms financial relations and methods for the formation and use of centralized and decentralized funds of funds, methods of financial planning, forms of financial and financial system management, financial legislation (including the system of legislative norms and regulations, rates and principles that are used in determining government revenues and expenditures, organizing the budget system and extra-budgetary funds, enterprise finance, the securities market, insurance services, etc.)
Allocate two types of financial mechanisms:
1. Directive financial mechanism is developed for financial relations in which the state is directly involved (taxation, spending, budget, etc.). Assumes the obligation for all subjects of financial relations of established forms, types and methods of action. In a number of cases, the directive financial mechanism can also extend to financial relations in which the state is not directly involved. Such relationships are either great importance to implement the entire financial policy (corporate securities market), or one of the parties to these relations is an agent of the state (finance of state enterprises).
2. Regulatory financial mechanism defines the basic rules of conduct in a sphere of finance where the interests of the state are not directly affected, for example, when organizing intra-economic financial relations in private enterprises. In this case, only the general procedure for the use of financial resources remaining after the payment of taxes and other obligatory payments is established. The enterprise independently develops forms, types of cash funds.
9. Financial system of the Russian Federation: concept, structure.
Financial system- this is a set of divisions and links of financial relations, through which the formation, distribution and use of funds of funds is carried out. The financial system includes all financial institutions of the country that serve money circulation.
The links of the financial system can be grouped into three big blocks, each of which also has an internal structure:
I Centralized finance :
1. State budget.
The size and structure of the state budget characterize the level of social economic development countries. The main source of budget formation are taxes from individuals and legal entities. The rest of the budget revenue is replenished from non-tax sources. The collected revenues are used to solve numerous tasks assumed by the state: development of healthcare, education, housing construction, support for the elderly, etc.
Consists of three independent units:
Federal budget of the Russian Federation;
Budgets of national-state and administrative-territorial formations;
Budgets of municipalities.
The budget consists of two interrelated groups of items: revenue and expenditure. The revenue side of the budget contains sources of funds and their quantitative parameters. In the expenditure part, the directions, areas in which money is spent, their quantitative parameters are determined.
2. State loan reflects credit relations regarding the attraction by the state of temporarily free funds of the population, enterprises and organizations to finance public expenditures.
State credit is based on the voluntariness of payments to the state treasury; is attracted through the placement of government loans, money and clothing lotteries and other securities.
State credit is also external government loans to cover the budget deficit.
3. State off-budget funds designed to implement the social functions of the state. They are federal property, but act as independent financial and credit institutions of the financial system (Social Insurance Fund, Mandatory Medical Insurance Fund, Pension Fund).
4. Funds of personal and property insurance are intended to compensate for damage caused by natural disasters to enterprises and the population, as well as to pay material support to the insured person or his family in the event of an insured event (and also contribute to the implementation of measures to prevent accidents).
5. Stock market - the type of financial relations arising from the purchase and sale of specific financial assets (securities).
The stock market ensures the movement of capital in industries with a high level of income, serves to mobilize and effectively use temporarily free funds.
II . decentralized finance.
1. Finance of commercial enterprises and organizations serve material production, the creation of a gross domestic product, its distribution within enterprises and the redistribution of part of this product to the budget and extra-budgetary funds.
2. Intermediary finances (credit institutions, private pension funds, insurance organizations and other financial institutions).
3. Finance of non-profit organizations .
III . Household finance - economic relations arising from the real circulation of money in the household sector. Household finances are the material basis of their life. They involve control over future income and expenses within a separate economic unit of society.
9. Budget device - budget system: concept,
principles.
The budget structure and the budgetary process in the Russian Federation are regulated by the provisions of the Constitution of the Russian Federation and the Budget Code of the Russian Federation.
In addition, the following are adopted annually: the federal law on the federal budget of the Russian Federation for the corresponding year; legal acts of local representative authorities on budgets for the next financial year; other federal laws, laws of subjects of the federation, normative legal acts of local authorities on budgetary issues.
The state budget system of the Russian Federation consists of three links and includes:
1. federal budget;
2. the budget of the constituent entities of the Russian Federation
3. local budgets (city, district, settlement, rural).
The budget system is a set of relations arising between various subjects in the process:
1. Formation and implementation of expenditures of budgets of all levels of the system and budgets of off-budget funds, implementation of state and municipal borrowings, regulation of state and municipal debt.
2. Drawing up and consideration of draft budgets of the system, their approval and execution, control over their execution.
There are: 21 republican budgets within the Russian Federation, 55 regional and regional budgets, city budgets of Moscow and St. Petersburg, 10 district budgets of autonomous okrugs, the budget of the Jewish Autonomous Region.
The budget of the subject of the Russian Federation and the set of budgets of municipalities located on its territory constitute the consolidated budget of the subject of the Federation. Code federal budget and consolidated budgets subjects of the Federation forms consolidated budget of the Russian Federation . The consolidated budget is used to calculate the minimum social financial norms and standards required for budget planning and for analyzing the effectiveness of the distribution and use of budget funds.
In accordance with the current legislation, the country's budget system is based on the following principles:
1. unity of the budget system of the Russian Federation;
2. differentiation of incomes and expenses between the levels of the budgetary system of the Russian Federation;
3. independence of budgets;
4. completeness of reflection of incomes and expenses of budgets, budgets of state off-budget funds;
5. budget balance;
6. efficiency and economy in the use of budget funds;
7. general (cumulative) coverage of expenses;
8. publicity;
9. credibility of the budget;
10. targeting and targeted nature of budgetary funds.
11. Budget classification.
The main methodological document on the basis of which budgets are compiled and executed is the budget classification.
Budget classification - this is a grouping of incomes and expenditures of budgets of all levels, as well as sources of covering the deficit of these budgets with the assignment of grouping codes to classification objects. This classification is the same for the budgets of all levels and is approved by federal law. She has importance because it is used:
For the preparation, approval and execution of the budget;
Control over the allocation and use of budgetary funds;
Ensuring comparability of indicators of budgets of all levels;
Preparation of consolidated budgets of all levels.
The budget classification is used to ensure comparison and systematization of revenues and expenditures of budgets of different levels according to homogeneous features.
The budget classification includes:
1. classification of budget revenues - a grouping of budget revenues of all levels of the budget system of the Russian Federation, which determines the sources of formation of budget revenues of all levels of the budget system of the Russian Federation.
2. functional classification of budget expenditures - a grouping of budget expenditures of all levels of the budget system of the Russian Federation, reflecting the direction of budget funds for the implementation of the main functions of the state, including financing the implementation of regulatory legal acts adopted by state authorities of the Russian Federation and state authorities of the constituent entities of the Russian Federation, to finance the implementation of certain state powers transferred to other levels of power.
3. economic classification of budget expenditures - grouping of expenditures of budgets of all levels of the budget system according to their economic content, which consists of 5 levels: group, subgroup, subject item, subitem, item of expenditure.
4. classification of sources of internal and external financing of budget deficits - a grouping of borrowed funds attracted by the Russian Federation, constituent entities of the Russian Federation and local governments to cover the deficits of the corresponding budgets.
5. classification of types of state internal debts of the Russian Federation and subjects of the Russian Federation - grouping of debt obligations of the government of the Russian Federation, executive authorities of the subjects of the Russian Federation, local governments.
6. classification of public external debt and classification of external assets of the Russian Federation - a grouping of state external debt obligations of the Russian Federation, the external debt of the constituent entities of the Russian Federation, as well as the external debt of international financial institutions. Organizations, foreign governments, foreign commercial banks and firms before the Russian Federation.
7. departmental classification of federal budget expenditures - a grouping of expenditures that reflects the distribution of budget funds by main managers of federal budget funds(a public authority of the Russian Federation that has the right to distribute federal budget funds to subordinate budgetary funds, as well as the most significant budgetary institution of science, education, culture, healthcare and the media).
Budget Process- activities of authorities and administrations in the preparation, consideration and approval of the budget. This activity is regulated by: the Constitution of the Russian Federation, the budget code of the Russian Federation, the law “On the Fundamentals of the Budgetary Structure and the Budgetary Process”; at lower levels - by the laws of the constituent entities of the Russian Federation and legal acts local authorities.
The budget process covers 4 stages:
1. Drawing up a draft budget yavl. the exclusive prerogative of the Government of the Russian Federation, the relevant executive authorities of the subjects of the federation and local governments.
2. Consideration and approval of the budget assumes that the Government of the Russian Federation submits to the State Duma of the Federal Assembly of the Russian Federation a draft federal law on the federal budget for the coming year. The State Duma is considering a draft federal law on the federal budget for the coming year in 4 readings.
3. The execution of the budget begins after approval in the prescribed manner. In the Russian Federation, treasury execution of budgets is established. The implementation of budgetary operations through the accounts of the Treasury makes it possible to ensure full accounting and control of each stage of budget execution.
4. Drawing up a report on the execution of the budget and its approval is one of the forms of financial control exercised by the legislative authorities. Control is exercised by the Accounts Chamber of the Russian Federation. The report on budget execution, based on the reports of the main managers, is prepared by the budget executing body. The Ministry of Finance is responsible for compiling the budget execution report. RF.
The activity of state bodies from the beginning of the preparation of the draft budget to the approval of the report on its execution lasts about 3.5 years. This period is called the budget cycle.
The main principles of the budget process are:
1. the principle of the correct execution of the federal budget
2. the principle of completeness and timeliness
3. the principle of financing the costs associated with the provision of budget loans
4. the principle of financing expenditures on approved commitments.
12. State budget: concept, functions and tasks
The legislative definition of the budget is a form of formation and spending of funds of funds intended for financial support of the tasks and functions of the state and local government.
From a legal, doctrinal point of view, the budget, on the one hand, is the main financial plan for the formation, distribution and use of public finances, on the other hand, it is adopted in a special procedure by a representative body of state power in the form of a law.
All budgets in the Russian Federation are accepted in the form of annual budgets - for one financial (budget) year (from January 1 to December 31).
Budget functions:
1. Distribution and redistribution- through the budget, the formation of public finances and their distribution (use) is carried out.
2. Analytical- consists in classifying and systematizing the existing needs and capabilities of society and the state.
3. general theoretical- purpose of the budget - to promote the development of economic (financial) and legal (budgetary law) science and science about society, the state and the economy in general (for example, to promote the development of science government controlled, general theory finance, etc.)
4. Control- The budget allows monitoring and control over the volume of needs and opportunities of society and the state.
5. critical- in the process of budgetary relations, shortcomings and gaps in the current legislation and the sphere of budgetary activity, inconsistency of legal norms with the realities of economic reality, the tasks of state regulation of the economy and the interests of the state as a whole are revealed.
To the main tasks budget include:
1. redistribution of GDP,
2. state regulation and stimulation of the economy,
3. financial support of the budgetary sphere and implementation social policy states.
4. Control over the formation and use of centralized funds of funds.
13. Composition and structure of income of the federal budget of the Russian Federation .
Budget revenues are funds received free of charge and irrevocably in accordance with the law at the disposal of state bodies. appropriate level of authority.
Budget revenues are usually classified on various grounds. One of the main ones is the classification of types of income allocated depending on the form of their formation:
1. Tax income:
· Direct taxes (tax on income, personal income tax and other income on profit or income);
· Taxes levied depending on the wage fund (UST, contributions from accidents, etc.);
· Taxes on goods and services (value added tax, excises, payments and license fees);
· Taxes on property (taxes on the property of individuals, on the property of enterprises, etc.).
2. Non-tax revenues include:
· Income from the use of state or municipal property;
· Income from paid services provided by budgetary institutions under the jurisdiction of the federal executive authorities, executive authorities of the constituent entities of the Federation, and local governments, respectively;
· Funds received as a result of the application of measures of civil, administrative and criminal liability, including fines, confiscations, compensations, as well as funds received in compensation for harm caused to the Russian Federation, constituent entities of the Federation, municipalities, and other amounts of forced withdrawal;
· Income in the form of financial assistance received from the budgets of other levels of the budget system of the Russian Federation, with the exception of budget loans and budget credits;
· Other non-tax income.
3. Gratuitous transfers include receipts from:
· Non-residents;
· Other levels of government (subsidies, subventions, funds transferred by mutual settlements, transfers, other gratuitous receipts);
· State off-budget funds;
· State enterprises and institutions;
· International organizations.
14. Composition and structure of expenditures of the federal budget of the Russian Federation .
Budget expenditures are the costs that arise in connection with the performance of the state of its functions.
Classification of types of budget expenditures:
1. According to the degree of predictability:
Planned;
Unplanned.
2. By economic content:
Current expenses associated with the provision of budgetary funds legal entities for their maintenance and coverage of current needs. These costs include government consumption costs, current subsidies to lower governments, public and private enterprises, transportation fees, interest payments on public debt, and other expenses.
Capital expenditure represent the cash costs associated with an investment in fixed capital and an increase in inventories. They include capital investments at the expense of the budget in various sectors of the national economy, investment subsidies and long-term budget loans to state and private enterprises, and local authorities.
3. By the level of the budget system:
3.1. federal budget expenditures:
Ensuring the activities of public authorities and executive authorities;
The functioning of the federal judiciary;
Implementation international activities in the general federal interests;
National defense and state security, ensuring the conversion of defense industries;
Elimination of the consequences of emergency situations and natural disasters on a federal scale;
Service and repayment of public debt;
Financial support for the constituent entities of the Russian Federation, etc.
3.2. Expenses of the budgets of the constituent entities of the Russian Federation:
State support for industries (with the exception of nuclear energy),
Ensuring law enforcement activities;
Ensuring fire safety;
Ensuring social protection of the population;
Development of market infrastructure;
Provision of media;
Ensuring the protection of the natural environment, the protection and reproduction of natural resources, the provision of hydrometeorological activities, etc.
3.3. Local budget expenditures :
Formation and management of municipal property;
Municipal road construction and maintenance of local roads. -Etc.
15 . Budget deficit: concept and sources of its coverage .
budget deficit is the excess of budget expenditures over its revenues.
The process of financing the budget deficit can be controlled by choosing one or another source of financing, maneuvering the conditions for issuing government securities, the ratio of internal and external loans, creating favorable conditions for maintaining domestic savings of the population, indexing securities and deposits, limiting public debt servicing costs, etc.
The sources of financing the budget deficit are approved by the legislative authorities in the law on the budget for the current year. At the Federation level, these sources are:
Domestic loans received Russian Federation from credit institutions in national currency; state loans carried out by issuing securities on behalf of the Russian Federation; budget loans received from the budgets of other levels of the budget system of the Russian Federation;
External - government loans carried out in foreign currency; by issuing securities on behalf of the Russian Federation; loans from foreign governments, banks, firms, international financial organizations in foreign currency.
The main source of financing the state budget deficit are government loans. If expenses grow much faster than revenues, the importance of borrowed funds as a source of financing increases. At the same time, repayment of previously issued loans can be carried out by issuing new loans, i.e. through refinancing. The government debt is being refinanced.
In world practice, there are two traditional ways to cover the budget deficit: these are government loans and tougher taxation. But there is a third way, which provides for an increase in the money supply in circulation - this is our own production of money.
The main reasons for the budget deficit in our country are: 1. The decrease in the efficiency of social production, aggravated by the low effectiveness of foreign economic relations. 2. Imperfection of the country's financial system. 3. Conservatism of the structures of the financial system, their focus on administrative-command methods of managing the economy. 4. The irrationality of the budget mechanism, which does not allow the state to use it as a stimulus for the development of the economy and the social sphere. 5. Inefficient budget spending structures, increased desire to live beyond one's means, large public investment and spending.
16. Tax system of the Russian Federation: role, structure, and principles
construction.
The tax system is a set of taxes and other payments levied in the state, plus a set of laws governing taxation, the structure and functions of the state. tax authorities. Tax system incl. includes not only a list of taxes levied and rates for them, but also the laws themselves that establish these taxes, and the bodies involved in the calculation and control over the implementation of established legislation. The structure of the tax system of the Russian Federation in accordance with the Tax Code of the Russian Federation is as follows:
1. Federal taxes and fees (VAT, excises on certain types of goods (services), income tax, capital income tax, personal income tax, UST, state duty, customs duty and fees, forest tax, water tax, environmental tax, federal license fees)
2. Regional taxes and fees (property tax, real estate tax, road, transport, sales tax, gambling tax, regional license fees)
3. Local taxes and fees (land tax, personal property tax, advertising tax, inheritance or gift tax, local license fees)
There are nine basic principles of taxation, which are aimed at the equal and impartial collection of taxes according to the established tax rates:
1. the principle of universality - each person must pay legally established taxes and fees
2. the principle of equality - all subjects are equal before the tax legislation
3. the principle of fairness - there must be an account of the actual ability of the subject to pay this tax
4. the principle of proportionality - involves balancing the interests of the taxpayer and the state treasury.
5. the principle of denial of retroactive effect of tax legislation - newly adopted tax laws do not apply to relations that arose before its adoption
6. principle of single entry - one object can be subject to one type of tax in one tax period only once
7. the principle of preferential treatment - implies the existence of preferential rates or taxation conditions for certain groups of taxpayers
8. the principle of equal protection of the rights and interests of taxpayers and the state in the manner prescribed by law
9. the principle of non-discrimination - implies the absence of any differences in gender, nationality, ideological and other characteristics between taxpayers.
17. Tax policy: essence, goals and objectives
Tax policy- a set of legal actions of authorities and management, which determines the purposeful application of tax laws. It is also the legal norms for the implementation of tax technology in the regulation, planning and control of state revenues.
Can be distinguished three types of tax policy.
The first type - policy of maximum taxes, characterized by the principle of "take everything you can." At the same time, a “tax trap” is prepared for the state, when tax increases are not accompanied by an increase in government revenues. The maximum rate limit is determined and depends on many factors in each specific case. Foreign scientists call the marginal rate of 50%.
Second type- policy of reasonable taxes. It promotes the development of entrepreneurship, providing it with a favorable tax climate. Entrepreneur is maximally deducted from taxation.
The lecture notes meet the requirements of the State Educational Standard for Higher vocational education. Accessibility and brevity of presentation make it possible to quickly and easily obtain basic knowledge of the subject, prepare and successfully pass the test and exam. The content, functions, socio-economic essence of finance, the monetary system of Russia, the importance of the budget in the development of the economy and the social sphere, the current state of extra-budgetary redistribution of financial resources, as well as the finances of business entities, and much more are considered. For students of economic universities and colleges, as well as those who independently study this subject.
LECTURE #2
Financial system
1. general characteristics financial system
The concept of "financial system" is the development of a more general concept - "finance".
Finances determine economic social relations, which manifest themselves in different ways. Finance has its own peculiarity in each link of the financial system. The link of the financial system is a certain area of financial relations, and the financial system as a whole is a combination of various areas of financial relations. At the same time, cash funds are formed and used.
The financial system is a system of forms and methods of formation, distribution and use of state and enterprise funds.
The leading element of the financial system is the state budget. In terms of its material content, it is the main centralized fund of state funds, the main instrument for the redistribution of national income. Up to 40% of the country's national income is redistributed through this link in the financial system.
The main revenues of the state budget are taxes that make up from 70 to 90% or more of the total amount of its income (income tax on individuals, income tax, excises, value added tax, customs duties).
The main expenses are also made from the state budget: for military purposes, economic development, maintenance of the state apparatus, social expenses, subsidies and loans.
The second link in the financial system is local (regional) finances, including local budgets, finances of enterprises owned by municipalities, and autonomous local funds.
Secondary taxes, mainly property taxes, are assigned to local budgets. In local budgets, compared to the state budget, a higher share of funds is directed to social purposes. Local budgets are chronically in deficit and receive the funds they need through subsidies and loans from the state budget and the issuance of local loans guaranteed by the government.
The third link in the financial system is off-budget special funds. The funds of these funds are directed to the payment of pensions for old age, for disability, for the loss of a breadwinner; benefits for temporary disability, for pregnancy and childbirth, for unemployment; for the construction and repair of roads, etc. Extra-budgetary funds are the Pension Fund, the Medical Insurance Fund, the Employment Fund, the Social Insurance Fund, the Road Fund, funds for financial regulation in various sectors, the Fund for Assistance to the Conversion of Military Production, etc.
State credit is a credit relationship between the state and legal entities and individuals, in which the state acts as a borrower of funds. Increase in domestic debt for last years associated with the issuance of banknotes to cover the budget deficit and is a powerful inflationary factor.
In the insurance sector, the links are: social insurance, property and personal insurance, liability insurance, business risk insurance.
The finances of enterprises of various forms of ownership form the basis of finance and are divided into three main parts: the finances of commercial enterprises, the finances of non-profit enterprises, and the finances of public associations. This is where the bulk of the financial resources are formed. The main source of production and social development is profit, which enterprises dispose of at their own discretion.
2. Financial support
Financial support of the reproduction process is the covering of reproduction costs at the expense of financial resources.
Financial resources are the most important monetary source for the expansion of production.
A decrease in their volume limits the possibility of a targeted impact of finance on the development of the economy, entails a reduction in the scale of investment in the production and social spheres, a decrease in the consumption fund as part of the national income used, an imbalance in the natural-material and cost structure of social production, and various kinds of disproportions.
All elements of the value of the gross social product are involved in the formation of financial resources, but the main source is the national income, and mainly that part of it that is net income.
Income from foreign economic activity, as well as part of the national wealth involved in economic circulation (carryover balances of budget funds used to cover the expenses of the current year, reserve funds of insurance organizations, funds from the sale of part of the country's gold reserves, proceeds from the sale of excess property, etc.).
Borrowed and borrowed funds are also used to form financial resources.
At the micro level, non-centralized financial resources are formed that are used for the costs of expanding production and meeting the socio-cultural needs of workers.
They are directed to capital investments, increase in working capital, financing of scientific and technological achievements, carrying out environmental protection measures, meeting social needs.
The needs of social production at the macro level are provided by centralized financial resources. The forms of their use are budgetary and extrabudgetary funds, the funds of which are directed to the development of the national economy, the financing of social and cultural events, and the provision of defense and management needs.
The main ways to solve the problem of finding financial resources are connected, firstly, with the implementation of the adopted program for stabilizing the economy and the transition to a market economy, and secondly, with the implementation of specially developed measures for the financial recovery of the economy and restructuring the system of financial relations in the country.
Financial provision of reproduction costs can be carried out in three forms: self-financing, lending and public funding.
Self-financing is based on the use of own financial resources of business entities. With a lack of own funds, an enterprise can reduce its costs or use borrowed funds raised on the basis of securities transactions.
Lending is a method of financial support for reproduction costs, in which the expenses of a business entity are covered by a bank loan provided on the basis of urgency, payment and repayment.
State financing is made on a non-refundable basis at the expense of budgetary and non-budgetary funds formed at different levels of government in the process of distribution and redistribution of a part of the national income.
In practice, it is necessary to achieve an optimal balance between all three forms of financial security, and this is possible only on the basis of an active financial policy of the state.
In the conditions of transition to the market, the role of financial reserves increases. They are indispensable in the event of huge losses or unforeseen circumstances.
They can be created by business entities themselves at the expense of their own financial resources, their management structures, specialized insurance organizations and the state.
3. Financial mechanism
Consistent functioning different parts economy is achieved through its regulation, ie, changing the growth rate of individual structural units to restructure production in accordance with the changing needs of society.
Under market conditions, regulation of the economy is achieved through the redistribution of financial resources.
The regulation of the economy occurs primarily through self-regulation, which is ensured by the functioning of the market, including the financial one. Thanks to him, the possibility of free and rapid redistribution of financial resources between different departments of the national economy is created.
Along with self-regulation, state intervention in the economy has a great influence on the structure of social production, its necessity is due to the solution of tasks related to meeting the needs of the whole society - ensuring major structural changes, supporting priority areas of economic development, expanding and improving social and industrial infrastructure facilities, etc.
The state intervenes in the economy through the use of cost leverage by the legislative and executive authorities to influence the processes of social development.
With the help of public investment, tax policy, and the activities of various government agencies, a specific mechanism of influence on the economy is being formed.
Regulatory capabilities of finance enterprises are mainly used for intra- and inter-economic redistribution of financial resources, regulatory capabilities of the state budget - to regulate sectoral and territorial proportions.
In the regulation of reproduction proportions, the importance of insurance is gradually growing, designed to guarantee the stability of production.
In the future, insurance should compensate for losses from failed scientific and technical developments and lost profits from downtime due to strikes, political unrest, etc.
In the regulation of territorial proportions, mainly state and local finances, as well as partly the finances of enterprises, take part. It should be noted that self-regulation occurs when subsidies and subventions are provided to lower budgets, the formation and use of territorial regulatory funds, and various forms of state credit.
In order to bring the economy out of the crisis, to provide reliable and sustainable sources of growth, it is necessary to use financial incentives that can be used to influence the material interests of business entities.
Financial incentives are one of the methods for regulating national economic proportions. Financial incentives include:
1) effective directions for investing financial resources:
a) financing of technical re-equipment;
b) financing of costs associated with the reproduction of the labor force, professional training of personnel, improvement of their qualifications, reorientation of workers to new types of production;
c) consistent implementation of programs aimed at ensuring shifts in the sectoral and territorial structures of social production, improving economic proportions in accordance with modern needs;
2) incentive funds (material and social development);
3) budgetary methods of production intensification;
4) special financial benefits and sanctions.
The financial sanctions are ineffective today. They are disproportionate to the amount of lost profits, especially sanctions for non-fulfillment of contracts for the supply of products.
In order for financial sanctions to become real and effective, a significant increase in liability for failure to fulfill mutual obligations is necessary.
An indispensable clause of any contract should be fixing the need to determine the amount of lost profits in case of violations of the rules for the supply of products.
A financial mechanism is used to implement the financial policy and its successful implementation.
It is a set of ways to organize financial relations used to create favorable conditions for economic and social development.
The financial mechanism consists of types, forms and methods of organizing financial relations, methods of their quantitative determination.
The financial mechanism is subdivided into the financial mechanism of enterprises and economic organizations, the insurance mechanism, as well as the mechanism for the functioning of public finances.
This classification takes into account the characteristics of individual units of the public economy and the allocation of areas and links of financial relations.